Paramount has submitted concessions to secure regulatory approval of its $110 billion merger with Warner Bros. Discovery in Europe.
In an update on its website, the European Commission extended the deadline of its Phase 1 investigation from July 7 to July 22. However, an EC spokesperson declined to disclose the specific commitments that have been submitted. Separately, the EC is reviewing the foreign investment in the deal, with a deadline for that investigation set for July 14.
The move comes after the officials from the media giant and EC held a meeting last week, where the two sides discussed potential remedies to secure regulatory approval, including withdrawing from United International Pictures, an international distribution joint venture with Universal.
In a statement, Paramount didn’t specify its concessions, but said it has been working constructively with the EC for eight months and is “confident that this remedy directly and comprehensively addresses any concerns expressed in the European Commission’s preliminary assessment and support the path for timely clearance.”
“We look forward to continuing to work constructively with the European Commission and all remaining regulatory agencies as they advance their review process for this procompetitive transaction,” the company added.
Thus far, the Paramount-WBD merger has been given clearance from regulators in Kuwait, South Africa, China, Australia, New Zealand, Saudi Arabia, Ukraine, Serbia and North Macedonia and foreign direct investment authorities in Spain, Germany, Slovenia, Belgium, Czechia, Italy, France and Romania. There is also “no statutory impediment” to clear the merger in Canada after a waiting period under the country’s Competition Act expired.
However, it still faces scrutiny from the United Kingdom, where Secretary of Culture, Media and Sport Lisa Nandy has informed Paramount and WBD that she feels “minded to intervene” and asked the companies to address her concerns by July 6, with a final decision on whether it will be cleared or move to a Phase 2 investigation with the Competition and Markets Authority and Ofcom expected by Aug. 7.
And while the U.S. Justice Department has cleared the merger, it is still awaiting clearance from the FCC on its foreign ownership review and could face litigation from a group of U.S. state attorneys general, including from California and New York, aimed at blocking the deal.
In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
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